Published: Fri, January 19, 2018
Finance | By Cynthia Curry

Morgan Stanley jumps after reporting better than expected fourth-quarter earnings (MS)

Morgan Stanley jumps after reporting better than expected fourth-quarter earnings (MS)

Morgan Stanley (NYSE:MS) released its earnings report for the fourth quarter of 2017 on Thursday. That's despite weaker trading revenues and the one-off U.S. tax payment.

Morgan Stanley earned $686 million, or 29 cents a share, down from $1.67 billion, or 81 cents a share, from a year earlier. And, out-of-hours trading post the earnings release is positive. For the past month, Morgan Stanley's stock has been 5.15%, 13.10% for the last quarter, 22.62% for the past six months and 31.32% for the past 52 weeks. However, adjusted earnings per share was $0.84, beating expectations for the Bank's performance.

Morgan Stanley also notes that the new tax reform heavily hit its earnings for the fourth quarter of the year. The firm had net revenue in the quarter of $9.5 billion, up from $9.02 billion in the same period a year ago.

However, like Goldman Sachs earnings showed Wednesday, Morgan Stanley's trading revenues were disappointing.

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Wealth management revenue grew to $4.4 billion from $4 billion a year ago.

Full-year earnings were also positive.

"Over the course of the full year we achieved the strategic objectives outlined two years ago".

For the full year, Morgan Stanley reported net revenue of $37.9 billion on an adjusted EPS of $3.60, excluding the tax charge. Trading was down in line with Morgan Stanley's competitors, with bond trading revenue falling by roughly half. Wealth management business reported revenues of $4.4 billion, beating StreetAccount's forecast of $4.3 billion. The US bank's 2017 compensation expenses totalled $17.2 billion, up from $15.9 billion a year ago.

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